Business
Acquisition
Acquisition.
About this update from Chemring Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6489A\n Chemring Group PLC\n 03 June 2021\n \n \n \n \n 3 JUNE 2021\n \n \n CHEMRING GROUP PLC (\"Chemring\", the \"Group\" or the \"Company\")\n \n \n ACQUISITION OF CUBICA GROUP \n \n \n Chemring is pleased to announce the acquisition of Cubica Technology Limited (\"Cubica\") and Q6 Holdings Limited (\"Q6\") (collectively the \"Cubica Group\") (the \"Acquisition\"). The consideration will be satisfied by a payment in cash on completion, funded from Chemring's existing bank facilities, and a deferred consideration payable in Chemring 1p ordinary shares in two tranches on the second and third anniversary of completion. The Acquisition creates further opportunities for Chemring to enhance and further accelerate growth in its Roke business.\n \n \n Acquisition overview\n \n \n Cubica, based in Woking, Surrey, is a research and development company specialising in artificial intelligence, machine learning, data fusion and autonomy. Principally supplying into the defence and security sectors, Cubica is a trusted supplier to the UK Government, Law Enforcement, and a number of international defence suppliers and private sector organisations. Many of their technologies have been developed and commissioned to detect criminal behaviour, protect assets and help save lives.\n \n \n Q6 is the majority shareholder of Vigil AI Limited (\"Vigil AI\"), which has technology providing state-of-the-art solutions to enable online platforms to detect imagery relating to child sexual exploitation globally. Vigil AI has established a joint venture in the US, Krunam KBC, Inc., a public benefit corporation (\"Krunam\"), in conjunction with Just Business Management, LLC, a US-based social enterprise firm. Krunam is leading the sales and deployment of the Vigil AI technology into the global commercial market.\n \n \n Since being founded in 2013, Cubica and its employees have developed world-first technologies including its support to building the award-winning Vigil AI technology and its team members have received customer and industry accolades for their research and data science work. They are recognised by the UK Government as leading innovators in their field of expertise. The current owners of Cubica and Q6 will remain in employment with Chemring following completion of the Acquisition.\n \n \n Opportunity and rationale\...